Your Right to Know

Gene Sigel got into the whiskey-making business in 2012. Last year, he decided to sell some of
his Red Eagle Ohio Bourbon Whiskey from a renovated 1885 barn on his farm in Geneva, Ohio, that
serves as his distillery.

In nine months last year, Sigel sold $107,000 worth of bourbon, which sounded pretty good —
until he found out the Ohio Division of Liquor Control would take $47,000, or 44 percent, from his
sales as a “distributor.”

Through a contractual agreement, the agency sends the profits from liquor sales — including
Sigel’s $47,000 — to JobsOhio, the state’s privatized jobs-development program.

Needless to say, that did not please Sigel, an Ashtabula County farmer whose main occupation is
growing wine grapes in a region of the state that features many vineyards and attracts thousands of
tourists annually.

“I’m not criticizing JobsOhio. But the state doesn’t really do anything except collect 45
percent of each final sale,” Sigel said. “They shouldn’t get that fee when they haven’t done
anything.”

Sigel and others among the 20 or so Ohio microdistillers persuaded state Rep. Ron Young,
R-Leroy, to introduce legislation to give them a small break for on-premises liquor sales. Young’s
legislation, House Bill 499, would exempt the first 750 gallons from the distribution
assessment.

Sigel thinks that might save him $75,000 to $80,000 a year — not much for the state, but a lot
for a small businessman. The bill has not yet had a hearing.

The bill has the support of Ryan Lang of Columbus, whose Middle West Spirits at 1230 Courtland
Ave. is among the new breed of small-batch microdistilleries.

The distillers have yet to convince Ohio Commerce Director Andre Porter of the wisdom of their
position.

Porter said last year, when the idea of legislation was first suggested, that while the state is
sympathetic to small businesses, it must make sure “all our regulatees are treated the same.”

Agency officials also expressed concern that removing JobsOhio revenue might undermine the bonds
sold as part of the Division of Liquor Control transaction.

Sigel said if he can keep more of the profit from bourbon sales, he could hire another employee
or two to help at the distillery.